Affordable Housing for Latvian Professionals

This project is one of the largest public-private partnership (PPP) housing development projects in Latvia, implemented by the State Joint Stock Company “Valsts nekustamie īpašumi” (VNĪ) in cooperation with municipalities and private sector partners. The project focuses on the development of the housing stock to promote balanced regional development.

The rental apartments will be allocated to specialists designated by local municipalities, supporting the availability of qualified professionals across the regions.

General information

Housing stock

The project is designed to develop a modern and energy-efficient multi-apartment housing in 17 municipalities throughout Latvia. In partnership with the public and private sectors, a total of 2,312 apartments will be delivered across two project bundles.

Location

► Bundle 1 – Liepāja, Rīga, Tukums, Jēkabpils, Daugavpils, Gulbene, Cēsis ►Bundle 2 – Liepāja, Sigulda, Rēzekne, Kuldīga, Olaine, Ķekava, Smiltene, Aizkraukle, Alūksne, Ventspils, Jelgava

Capital Investments

► Bundle 1: EUR 150 million ► Bundle 2: approximately EUR 100 million ►Estimated capital investments: EUR 250 million

Project Implementation

PPP Model

Design, Build, Finance, Maintain, Operate

Payment method

Availability payment

Public Partner

VNĪ

Procurement Method

Under evaluation

Procurement Process

In preparation

Availability Period

25 years

Benefits for Investors and Partners

Trusted partner

Establishing a long-term partnership with the public sector, ensuring lower investment risk and stable, regular returns.

Risk allocation between partners

Public–private partnership allows risks to be shared, thereby reducing the financial risk for individual investors.

Public reputation

Partnership with state or municipal institutions enhances the private partner’s reputation by demonstrating social responsibility and contributing to the well-being of society.

Predictable revenues

Project revenues are stable under a long-term contract and are not influenced by changes in market rental or sales prices, as payments are secured by the public partner.

Role of State Joint Stock Company “Valsts nekustamie īpašumi” (VNĪ) in the Project

Implementation

VNĪ ensures the preparation and implementation of the PPP housing project, including planning, organisation of procurement procedures, and contract management throughout the entire project life cycle.

Supervision

Oversees the project’s implementation by monitoring compliance with quality, sustainability, energy efficiency, and functional requirements.

Expertise

Consolidates and represents the interests of the state, ensuring a professional approach to the application of the PPP model and efficient resource management.

Cooperation

Coordinates cooperation between the state, municipalities, and the private partner, ensuring balanced and goal-oriented project implementation.

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Subject

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In July 2024, VNĪ signed an advisory agreement with the European Investment Bank (EIB) to provide comprehensive advisory consultations for structuring the programme and support the financial and economic assessment of Bundle 1.

Under Bundle 1 of the programme, the construction of rental housing is planned on high-readiness land plots in seven cities:

► Liepāja – Debess Street 4, 5, 6, 7;
► Riga – Tīnūžu Street (no specific address), Mežrozīšu Street 39, 41, 45, and Ozolciema Street 62;
► Tukums – Smilšu Street 54;
► Jēkabpils – Celtnieku Street 3B;
► Daugavpils – Nometņu Street 103;
► Cēsis – Festivāla Street 45;
► Gulbene – Malienas Street 2.

Memorandum of Understanding with Municipalities

Research, financial calculations

Preparation of procurement documentation

Contract with a private partner

Construction works

Asset transfer to municipalities

2024

2025

2026

2027

2028

2030

Memorandum of Understanding with Municipalities
2024

Research, financial calculations
2025

Preparation of procurement documentation
2026

Contract with a private partner
2027

Construction works
2028

Asset transfer to municipalities
2030

In July 2025, VNĪ initiated advisory cooperation with the Council of Europe Development Bank (CEB) for the preparation of financial and economic calculations for Bundle 2. This cooperation will support effective risk management and ensure long-term financial sustainability in accordance with the strategic objectives of the overall PPP housing programme.

Under Bundle 2 of the programme, the construction of rental housing is planned on high-readiness land plots in eleven cities:

► Liepāja – Ezerlīču Street 6;
► Sigulda – Saules Street 6C, 6D;
► Rēzekne – Maskavas Street 19, 21;
► Kuldīga – Aizputes Street 7;
► Olaine – Jelgavas Street 28A;
► Ķekava – land plot “Aprikozes”;
► Smiltene – Pļavas Street 2;
► Aizkraukle – Bērzu Street 13;
► Alūksne – Alsviķu Street 8, 10;
► Jelgava – 2nd Line (no address);
► Ventspils – Riņķa Street 48.